8-KMaterial AgreementsFinancial EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Material Agreement (Dec 8, 2016)

Filed December 8, 2016For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiaries, Consolidated Edison Company of New York, Inc. and Orange and Rockland Utilities, Inc., entered into a new Credit Agreement on December 7, 2016, replacing a previous agreement from October 27, 2011. This new agreement provides the companies with a revolving credit facility of up to $2.25 billion, with specific allocations for each subsidiary and an option to increase the total facility by $500 million under certain conditions. The primary purpose of this credit line is to support their commercial paper programs and for general corporate purposes. This new credit facility has a maturity date of December 7, 2021, with options for one-year extensions. It includes covenants related to debt-to-capital ratios and liens, and outlines events of default that could lead to the termination of commitments and acceleration of payments. The establishment of this facility is a routine financial management activity designed to ensure liquidity and operational flexibility for Con Edison and its regulated utility subsidiaries.

Key Highlights

  • 1Con Edison and its subsidiaries entered into a new Credit Agreement on December 7, 2016.
  • 2The new agreement replaces a credit facility dated October 27, 2011.
  • 3The total credit available under the new agreement is up to $2.25 billion on a revolving basis.
  • 4The facility can be increased by up to $500 million under specified conditions.
  • 5The credit line is primarily intended to support commercial paper programs and general corporate purposes.
  • 6The commitments under the agreement terminate on December 7, 2021, with potential for extensions.
  • 7Key covenants include limits on the ratio of consolidated debt to consolidated total capital (not to exceed 0.65 to 1) and restrictions on liens.

Frequently Asked Questions

The primary purpose of the new Credit Agreement is to provide Consolidated Edison, Inc. and its subsidiaries with a substantial revolving credit facility to support their commercial paper programs and for general corporate purposes, ensuring access to liquidity.

The Credit Agreement provides for an aggregate amount of up to $2.25 billion of credit available on a revolving basis. This amount can potentially be increased by up to $500 million under certain conditions.

The Lenders' commitments under the Credit Agreement are set to terminate on December 7, 2021, unless extended for additional one-year terms as provided within the agreement.

Events of Default, which can lead to termination of commitments and acceleration of debt, include failure to pay principal or interest, breach of covenants (such as the debt-to-capital ratio exceeding 0.65 to 1 or exceeding lien limitations), material inaccuracies in representations, or cross-default on other financial obligations of $150 million or more.